CA Foundation Syllabus 2025: Subjects, Topics & Marking Scheme

The Chartered Accountancy (CA) Foundation course serves as the entry point for aspiring chartered accountants in India. Designed by the Institute of Chartered Accountants of India (ICAI), the course aims to build a strong foundation in accounting, law, economics, and quantitative skills. This comprehensive grounding prepares students for advanced studies and a successful career in accounting and finance.

CA Foundation Syllabus for 2025

The CA Foundation syllabus for 2025 comprises four papers, each carrying 100 marks. Papers 1 and 2 are subjective, while Papers 3 and 4 are objective with negative marking for incorrect answers.

1. Paper 1: Accounting

   • Objective: To develop an understanding of basic accounting principles and their application in preparing financial statements.
   • Topics Covered:
     • Theoretical Framework: Introduction to accounting concepts, principles, and conventions.
     • Accounting Process: Journal entries, ledgers, trial balance, subsidiary books, cash book, and rectification of errors.
     • Bank Reconciliation Statement: Preparation and significance.
     • Inventories: Valuation and recording.
     • Depreciation and Amortisation: Methods and accounting treatment.
     • Bills of Exchange and Promissory Notes: Concepts and accounting.
     • Final Accounts of Sole Proprietors: Preparation for both manufacturing and non-manufacturing entities.
     • Financial Statements of Not-for-Profit Organisations: Preparation and analysis.
     • Accounts from Incomplete Records: Understanding and preparation.
     • Partnership and LLP Accounts: Admission, retirement, death of a partner, and dissolution.
     • Company Accounts: Issue, forfeiture, and reissue of shares; debentures; bonus and right issues; redemption of preference shares and debentures.

2. Paper 2: Business Laws

   • Objective: To provide a general understanding of the legal framework governing business operations.
   • Topics Covered:
     • Indian Regulatory Framework: Overview of major regulatory bodies like the Ministry of Finance, SEBI, RBI, etc.
     • The Indian Contract Act, 1872: General nature of contracts, consideration, essential elements, performance, breach, contingent and quasi-contracts, indemnity, guarantee, bailment, pledge, and agency.
     • The Sale of Goods Act, 1930: Formation of contract, conditions and warranties, transfer of ownership, delivery, and rights of an unpaid seller.
     • The Indian Partnership Act, 1932: Nature of partnership, rights and duties of partners, reconstitution, registration, and dissolution.
     • The Limited Liability Partnership Act, 2008: Nature, scope, features, incorporation, and differences from other business forms.

1. Paper 3: Quantitative Aptitude

   • Objective: To develop proficiency in mathematical and statistical techniques and their application in business contexts.
   • Topics Covered:
     • Part A: Business Mathematics:
       • Ratio and Proportion, Indices, Logarithms
       • Equations
       • Linear Inequalities
       • Mathematics of Finance
       • Permutations and Combinations
       • Sequence and Series (Arithmetic and Geometric Progressions)
       • Sets, Relations, and Functions
       • Basic applications of Differential and Integral Calculus in Business and Economics
     • Part B: Logical Reasoning:
       • Number Series, Coding-Decoding, Odd Man Out
       • Direction Tests
       • Seating Arrangements
       • Blood Relations
     • Part C: Statistics:
       • Statistical Representation of Data
       • Measures of Central Tendency and Dispersion
       • Probability
       • Theoretical Distributions
       • Correlation and Regression
       • Index Numbers

2. Paper 4: Business Economics

   • Objective: To impart an understanding of economic principles and their application in business decision-making.
   • Topics Covered:
     • Nature and Scope of Business Economics: Introduction and basic problems of an economy.
     • Theory of Demand and Supply: Law of demand, elasticity, consumer behavior, and supply concepts.
     • Theory of Production and Cost: Production function, returns to scale, cost concepts, and classifications.
     • Price Determination in Different Markets: Market structures and price-output determination.
     • Business Cycles: Phases and theories.
     • Determination of National Income: National income accounting and Keynesian theory.
     • Public Finance: Fiscal functions, budget, public debt, and fiscal policy.
     • Money Market: Demand and supply of money, monetary policy.
     • International Trade: Theories, trade policy instruments, negotiations, exchange rates, and capital movements.
     • Indian Economy: Overview and current economic issues.

Examination Pattern

• Paper 1 and Paper 2: Subjective type; each of 3 hours duration.
• Paper 3 and Paper 4: Objective type with negative marking; each of 2 hours duration.
• Passing Criteria: Minimum of 40% marks in each paper and an aggregate of 50% across all papers.

Recommended Study Materials

• ICAI Study Material: Official publications by ICAI provide comprehensive coverage of all topics.
• Reference Books:
  • Accounting: “Fundamentals of Accounting” by P.C. Tulsian

FAQ for CA Foundation Syllabus

1. What are the subjects in the CA Foundation syllabus?

The CA Foundation syllabus consists of four subjects:

• Paper 1: Accounting
• Paper 2: Business Laws
• Paper 3: Quantitative Aptitude (Mathematics, Statistics & Logical Reasoning)
• Paper 4: Business Economics

2. What is the exam pattern for CA Foundation?

• Papers 1 & 2 are subjective and have no negative marking.
• Papers 3 & 4 are objective with negative marking (0.25 marks deducted per wrong answer).
• Each paper carries 100 marks and the total exam is for 400 marks.

3. What is the passing criteria for CA Foundation?

To pass the CA Foundation exam, a student must:

• Score at least 40% marks in each paper.
• Secure an aggregate of 50% across all four papers.

4. How often does ICAI update the CA Foundation syllabus?

ICAI updates the syllabus periodically to align with industry standards and legal changes. Any major updates are announced on the ICAI official website.

5. Is CA Foundation a tough exam?

The difficulty level of CA Foundation depends on the student’s preparation. With proper study planning, consistent practice, and conceptual clarity, it is manageable.

6. How many attempts are allowed for CA Foundation?

There is no limit on the number of attempts, but the registration for CA Foundation is valid for four years. After that, students need to re-register.

7. Can I prepare for CA Foundation without coaching?

Yes, many students clear CA Foundation through self-study. ICAI study material, online resources, and mock tests can help in effective preparation.

8. Which books are best for CA Foundation preparation?

• Accounting: Fundamentals of Accounting by P.C. Tulsian
• Business Laws: Business Law by M.C. Kuchhal
• Quantitative Aptitude: Quantitative Aptitude for CA by Dr. T Padma
• Economics: ICAI study material and Principles of Economics by N. Gregory Mankiw

9. Is Mathematics compulsory for CA Foundation?

Mathematics is included in Paper 3 but not mandatory at the 12th-grade level. Students from non-math backgrounds can still prepare using logical reasoning and statistics.

10. What are the important topics in CA Foundation for scoring well?

• Accounting: Journal entries, final accounts, company accounts.
• Business Laws: Contract Act, Sale of Goods Act, Partnership Act.
• Quantitative Aptitude: Statistics and Logical Reasoning have higher scoring potential.
• Business Economics: Demand & Supply, Market Structures, National Income.

11. Can I use a calculator in the CA Foundation exam?

Yes, ICAI allows a non-programmable calculator with basic functions. Scientific and programmable calculators are not permitted.

12. How should I plan my CA Foundation preparation?

• Study at least 4-5 hours daily.
• Focus on conceptual understanding rather than rote learning.
• Solve mock tests and previous years’ question papers.
• Revise regularly and practice time management for exams.

13. What is the validity of CA Foundation registration?

The CA Foundation registration is valid for four years. After that, students must renew their registration.

14. When are CA Foundation exams conducted?

The CA Foundation exams are held twice a year, in May/June and November/December.

15. Where can I get the latest CA Foundation syllabus?

The official CA Foundation syllabus is available on ICAI’s website.